Chart Of The Day: GBPJPY Struggles With 50-day SMA To Extend Recent South-Run

January 10, 2017 06:18

UK Prime Minister's comments over the weekend, spreading fears that the Britain will lose its single market status post-Brexit, provided noticeable weakness to the GBP on Monday. The Pound dropped heavily across the board and GBPJPY, not being an exception, closed below 200-day SMA for the first time in over a month, indicating further south-run towards 139.00 – 138.80 horizontal-support. However, 50-day SMA level of 140.30 presently restricts the pair's downside, breaking which 138.80 and the 137.15 are likely rests that the quote could avail ahead of revisiting 135.50 and the 135.00 support-levels.

In case if prices reverses from present levels, 200-day SMA figure of 141.70 and the 142.30-50 are likely nearby resistances that could limit further upsides of the pair. Should Bulls manage to provide a daily close above 142.50, the 143.00, 50% Fibonacci Retracement of May – October dip, at 143.85, and the 145.00 may come-back on the chart.

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